• Perrigo is facing multiple securities class action lawsuits filed in the past by several law firms, alleging the company made materially false and misleading statements about underinvestment and manufacturing deficiencies in its Nestlé-acquired infant formula business, which allegedly overstated financial results.
• A key allegation is that persistent operational and quality issues in the infant formula unit were not fully disclosed, raising questions about how accurately this segment’s risks and economics were reflected in prior public communications.
• We’ll now examine how these securities class action allegations around infant formula underinvestment could reshape Perrigo’s broader investment narrative and risk profile.

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Perrigo Investment Narrative Recap

To own Perrigo, you need to believe in its core OTC and self care franchise while accepting that infant formula remains a problem area. The new securities class actions intensify scrutiny of past disclosures and heighten legal and reputational risk, but the more immediate operational swing factor is how quickly management can stabilize and potentially reshape the underperforming infant formula unit.

The most relevant recent announcement is Perrigo’s November 2025 decision to launch a strategic review of its infant formula business under its Three S framework, following guidance cuts tied to industry pressures. This review, alongside ongoing portfolio simplification and cost initiatives, sits at the center of near term catalysts, but the lawsuits add another layer of uncertainty around how much value can ultimately be realized from this asset.

Yet beneath the surface, one risk investors should be aware of is how recurring product quality and supply chain challenges in infant formula could...

Perrigo's narrative projects $4.6 billion revenue and $183.6 million earnings by 2028. This requires 1.7% yearly revenue growth and a $243.1 million earnings increase from -$59.5 million today.

Uncover how Perrigo's forecasts yield a $21.00 fair value, a 39% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span roughly US$21 to US$72 per share, showing very different expectations for Perrigo. You are seeing that diversity of views at a time when alleged underinvestment and manufacturing deficiencies in infant formula are front and center, which could have important implications for how sustainably the wider OTC and self care story plays out.

Explore 4 other fair value estimates on Perrigo - why the stock might be worth over 4x more than the current price!

Build Your Own Perrigo Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Perrigo research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Perrigo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Perrigo's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.